|I'm getting more than a little confused by your feedback; not exactly clear if the default OS entry boots OK - or not? Or if you have to manually select the one in the Operating Systems listing...?|
It would appear that the Default does boot OK; but that you are apparently (or may be) concerned that the data/text in its entry as the Default - is missing something (the text following Windows...?
If you look at the sample boot.ini in the M$ KB above - you will note that in the Default= entry - the information is truncated - it does not include the text that follows Windows - as entered in the list of Operating Systems.
Using the M$ KB boot.ini as above as an example: the content in (my) italics (copied from the M$ KB as a reference/example and duplicated below for clarity) is not included in the Default= field.
multi(0)disk(0)rdisk(0)partition(1)\Windows="Microsoft Windows XP Professional" /fastdetect
The critical information is the ARC path/statement (the four items that precede \Windows in that line of text); it's that which tells the boot-loader where to look for OS set as Default in order to boot to it. And if you were manually select an OS from the list of installed Operating Systems - again that line, that ARC path tells the boot-loader where to look etc..
In your boot.ini the ARC statement says there is one hard drive; and the OS is installed in the first partition; and that's the one set to boot - by default. Which apparently it does OK?